Research Shows That About Two-Thirds of the New Insurance Policies

question 46

Multiple Choice

Research shows that about two-thirds of the new insurance policies Prudential sells will be to current policyholders. This information indicates that __________segmentation would be appropriate for Prudential to use along with demographic and psychographic segmentation.

• A) benefit
• B) usage
• C) geographic
• D) personality

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Definitions:

Historical Returns

The past financial performance of an investment, often presented as an average annual return rate over a specific time period.

Small Firms

Companies with a smaller market capitalization, often characterized by higher potential growth and higher risk.

Large Firms

Companies that have a significant market capitalization, often characterized by a large amount of assets, revenues, and employees.

Risk Premium

The additional return expected from an investment for taking on a higher level of risk.